The Figure Given Below Depicts the Foreign Exchange Market for British

question 50

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Refer to Figure 22.2. Suppose S₁ is the initial supply curve and the British demand for U.S. manufactured computers decreases. Then, with flexible exchange rates:

• A)the price per British pound decreases by $0.10 and the quantity of British pounds increases by 50.
• B)the price per British pound decreases by $0.10 and the quantity of British pounds decreases by 50.
• C)the price per British pound increases by $0.15 and the quantity of British pounds decreases by 50.
• D)the price per British pound increases by $0.15 and the quantity of British pounds decreases by 75.
• E)the price per British pound and the quantity of British pounds remain unchanged.

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Definitions:

Random

A process or selection made without method or conscious decision, which is unpredictable and without a discernible pattern.

Census

A comprehensive count and survey of a population, usually conducted by a government.

Response Rate

The percentage of people who respond or react to a request or stimulus, often used in research or surveys.

Subscription Quality

The perceived value or excellence of services provided to subscribers, often evaluated based on service reliability, content, and customer satisfaction.